Oando Plc has notified Nigerian Exchange and Johannesburg Stock Exchange that it has received an offer from its core shareholder – Ocean and Oil Development Partners Limited – to acquire the shares of all minority shareholders in Oando. The Company will subsequently be delisted from NGX and JSE and re-registered as a private company.
In a notice available on the website of NGX, Oando explained thus:
“It is intended that the Transaction will be executed through a Scheme of Arrangement, in accordance with Section 715 of the Companies and Allied Matters Act, 2020 (as amended), and other applicable laws, rules, and regulations.
Under the Scheme, each Scheme Shareholder shall be entitled to receive the sum of N7.07 in cash or its equivalent in South African Rand (ZAR) for every ordinary share held by the qualified Scheme Shareholders at the Effective Date of the Scheme.
The proposed Scheme Consideration represents a 58% premium to the last traded share price of Oando on 28 March 2023, being the day prior to the date of submission of the Scheme application to the Securities and Exchange Commission.
Consequently, we confirm that Oando has applied for the SEC’s ‘No Objection’ to the Scheme. Please note that the effectiveness of the Scheme is subject to the approval of the shareholders of Oando at the Court-Ordered Meeting of the Company, as well as the sanction of the Federal High Court. The terms and conditions of the Transaction will be provided in the Scheme Document which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court-Ordered Meeting. If the conditions of the Transaction are satisfied and same is sanctioned by the Federal High Court, the Company will be delisted from NGX and JSE and re-registered as a private company”.
Investment in Oando PLC was a complete misadventure for minority shareholders, from those that bought the public offer at N95 way back in 2004, to those that took part in the right offers at N70 and N16.50 in 2010 and 2015 respectively, it has been a nightmare all the way. Now a paltry N7 is being offered to the shareholders when it appears the company is turning black. This is scam under the nose of SEC and NGX!
It doesn’t look nice at all. Forte oil when down on NSE an spin up an every investors took a stand.